- NZD/USD struggles to extend two-day recovery moves, sidelined of late.
- Three-week-old descending resistance line guards immediate upside ahead of 200-day EMA.
- Horizontal area from early January appears strong support to watch amid bearish MACD signals, nearly oversold RSI conditions.
NZD/USD remains defensive near 0.6230, struggling to extend the two-day winning streak during Friday’s Asian session. In doing so, the Kiwi pair grinds with an important trading range amid mixed oscillators.
That said, the quote currently jostles with a downward-sloping resistance line from February 02, close to 0.6250 by the press time, as the RSI (14) line seesaws around the oversold territory while the MACD signals are bearish.
The same suggests that the bearish bias remains intact with the downside room appearing limited.
As a result, a seven-week-old horizontal support area surrounding 0.6190 appears the key for the NZD/USD bears to watch during the quote’s further downside.
It’s worth noting that the Kiwi pair’s downside below 0.6190 could aim for 0.6100 while any further downside will need validation from the mid-November swing low surrounding 0.6060 before poking the 0.6000 threshold.
On the flip side, a daily closing beyond the aforementioned three-week-old resistance line will need to cross the 200-day Exponential Moving Average (EMA) level surrounding 0.6275 to convince the NZD/USD buyers. In that case, a run-up toward the February 14 high near 0.6390 can’t be ruled out.
Overall, NZD/USD is likely to remain bearish but the downside needs validation from 0.6190.
NZD/USD: Daily chart
Trend: Further downside expected